South Korean automakers saw their shares rise on Monday on optimism they would be exempt from import tariffs on vehicles the United States deems a threat to national security, after the US president said a revised trade deal could address concerns.

US President Donald Trump on Friday declared some imported vehicles and vehicle parts posed a national security threat. But he delayed a decision for as long as six months on whether to impose import tariffs to allow for more time for trade talks with the European Union and Japan.

He also said a US-South Korea bilateral trade deal, revised last year and in which Seoul made auto sector concessions, “could help to address the threatened impairment of national security”.

“We hope that Korea would not make the list of countries subject to tariffs, but it is premature to make a prediction,” South Korea’s finance minister, Hong Nam-ki, told reporters after a government meeting on Monday.

“The government will not lay back and will continue all-out efforts to persuade the United States not to put Korea on the list,” Hong said.

Japan’s Toyota Motor Corp, which said in March it would invest $13 billion (10 billion pounds) in US operations through 2021, called the US declaration “a major set-back for American consumers, workers and the auto industry” and said it sent the message “our investments are not welcomed”.

Donate

For years Intellasia.Net has been provided local updates in many Asia countries for free. If you love what we're doing you can show a helping hand by donation button bellow. Any amount is greatly appreciated. Your support will directly help with the monthly server fee as well as support our editors